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Tax on tourists' property, Kenya's latest idea

Kra would like to apply an existing rule

02-11-2023 by redazione

It appears that the Kenya Revenue Authority (Kra), as the government body itself reports on its X profile, is planning to levy a tax on personal goods brought into the country by tourists, if they exceed the value of USD 500, which exists but has in fact always been rightly ignored.

According to reports in the national media and also in the Frequently Asked Questions in the Kra brochure for passengers arriving in Kenya, the tax would affect not only new items, but also used ones.
It seems really excessive that it is going towards this strict application and we are convinced that the government, given also the clear opposition of the newly appointed Minister of Tourism (and former Minister of Foreign Affairs) Alfred Mutua, will not enforce this tax that risks further discouraging tourists from visiting Kenya, to the advantage of neighbouring countries such as Tanzania with Zanzibar.

The enforcement of what the Kra announced on X ('We remind you that when you travel you may carry personal or household items with a value of $500 or less. Anything over this amount will be subject to taxation,' the tweet reads) would mean, for instance, that even the latest iPhone could be subject to a tax, as well as relevant technological equipment in Kenya, e.g. cameras with special zooms for safari enthusiasts.

Minister Mutua, recently, at a conference filmed on Tik Tok, the video of which went viral, had expressed his displeasure against officials at airports, accusing them of frustrating foreign tourists.
"When our tourists arrive, they bring cameras with them, they wear shoes, yet they are harassed at the airport by Kra officials and this leaves them with a negative impression. Then we wonder why they do not return,' he said.

The Italian coastal tourism sector is also on the same line. 'Mutua is absolutely right,' explains Watamu entrepreneur Roberto Lenzi, who is also a member of Comites Kenya. 'The best way to create revenue and economic gain for everyone is to entice tourists to come to Kenya. With fewer entries, meanwhile, there are fewer visas. Does it make sense to tax something valuable to those who come on holiday and waive what is already an entry tax to the country next time? Not to mention that tourists make hotels, restaurants, safari agencies and a whole industry that pays taxes work, with much more money than taxing an iPhone...We are ready to talk to the authorities to find a common way to revive the economy of this country through tourism which, as Mutua says, is a great resource that should not be frustrated in any way.
 
Kenya must remain competitive and to do so it certainly needs to align itself with the more developed countries.
But this has to be done with judgement and foresight.
While it is true, for instance, that clear rules and serious controls can limit or even wipe out corruption and related 'bribes', which is a definite intention of the Ruto government, it is also clear that one cannot legally demand surpluses that other countries do not apply.
Not least because, absurdly, Kenya has long admitted that it is targeting a high-class clientele, particularly for its safaris (from January the entrance fees to the parks will rise sharply), but we do not believe that sponging off them is the best method to make them fall in love with the beauties of this country and promote it well.

UPDATE OF 2/11
(from Kenyans website)
The Kenya Revenue Authority (KRA) today put to rest the confusion generated by speculation that the agency is planning to introduce taxes on personal luggage valued at Ksh75,000 (USD500) or more.
In a detailed explanation this morning, the authority clarified that all used personal items are exempt from customs duties, regardless of the amount.
However, the Inland Revenue explained that under East African tax regulations, goods worth up to Ksh75,000 (USD500) per traveller are exempt from import taxes, provided the luggage is accompanied and declared to the customs officer.
At the same time, the authority provided further clarification on customs duties imposed on products imported into the country.
The authority gave the example of a situation where imported goods are subject to customs duties and the owners of the goods have to declare the price.
Any duty to be paid will then be based on the actual purchase price declared by the passenger or traveller.
In addition, all passengers are required to declare the specified items on the Passenger Declaration Form (F88) prior to arrival in Kenya and present it to a customs officer at the point of entry.
Passengers, however, have the right to challenge the customs duty charged and ask for explanations from the customs officer in charge.
"The scanning of a traveller's luggage is done to ensure the accuracy of declarations for taxation purposes and to exclude prohibited and restricted goods for the safety and security of all Kenyans," the statement read in part.
"Items flagged after the first-line X-ray or non-intrusive scanning process will be subjected to physical inspection by the customs officer."
The Authority also said it was in the process of increasing the use of technology to enhance non-intrusive baggage inspection at all entry points. 
Earlier, Kenyans had expressed concern about the fees imposed on people arriving in the country from abroad, especially at Jomo Kenyatta International Airport (JKIA).

TAGS: tasseturismoviaggiKraLenziMutua

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